Identifying Operating and Nonrecurring Income Components Following is the The Dow Chemical Company income statement. ($ millions) For Year Ended December 31 2014 2013 Net sales $55,174 $46,175 Cost of sales 45,780 39,148 Research and development expenses 1,660 1,492 Selling, general, and administrative expenses 2,609 2,487 Amortization of intangibles 509 399 Goodwill and other intangible asset impairment losses - 7 Restructuring charges (credits) 26 689 Asbestos-related charge 54 - Equity in earnings of nonconsolidated affiliates 1,112 630 Sundry income (expense)net 125 891 Interest income 37 39 Interest expense and amortization of debt discount 1,473 1,571 Income before income taxes 4,302 1,769 Provision for income taxes 481 (97) Net income $3,821 $1,976 Required a. Identify the components in its statement that you would consider operating. b. Identify those components that you would consider nonrecurring. ($ millions) For Year Ended December 31 a. b. 2014 2013 Operating? Nonrecurring? Net sales $55,174 $46,175 Answer Yes Answer No Cost of sales 45,780 39,148 Answer Yes Answer No Research and development expenses 1,660 1,492 Answer Yes Answer No Selling, general, and administrative expenses 2,609 2,487 Answer Yes Answer No Amortization of intangibles 509 399 Answer Yes Answer No Goodwill and other intangible asset impairment losses - 7 Answer Yes Answer Yes Restructuring charges (credits) 26 689 Answer Yes Answer Yes Asbestos-related charge 54 - Answer Yes Answer Yes Equity in earnings of nonconsolidated affiliates 1,112 630 Answer Yes Answer No Sundry income (expense)-net 125 891 Answer No Answer No Interest income 37 39 Answer No Answer No Interest expense and amortization of debt discount 1,473 1,571 Answer No Answer No Income before income taxes 4,302 1,769 Provision for income taxes 481 (97) Answer Yes Answer No Net income $3,821 $1,976 c. Compute net operating profit after taxes (NOPAT) and net operating profit margin (NOPM) for each year. Assume a statutory tax rate of 35%. 2014 2013 NOPAT (Round your answer to the nearest million dollar.) Answer Answer NOPM (Round your answer to one decimal place.) Answer Answer